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May/June 2009 INsight excerpts
Mexico-U.S. Tariff Concerns Affect Food, Ag Products
Mexico-U.S. Tariff Concerns Affect Food, Ag Products In retaliation against the dissolution of the U.S.-Mexico Cross-Border Trucking Demonstration Project, The Secretariat of Economy in Mexico has announced in its Diario Oficial (Federal Register), published on March 18, 2009, that it will be modifying import tariffs to 90 U.S. agricultural and industrial products. This modification will affect 36 agricultural products, estimated to be valued at $864 million. In 1995, as part of the North American Free Trade Agreement (NAFTA), freight services opened between the United States and Mexico, but in 2000, issues between the U.S. and Mexico with regard to articles in the NAFTA agreement began to arise. In 2007, the United States and Government of Mexico, in an effort to keep the cross-border transport services under the NAFTA agreement open, developed a one-year trucking pilot program. The Cross-Border Trucking Demonstration Project aimed to provide approved access to trucking and allowed 100 U.S. trucking firms to transport international cargo into Mexico. The program was a success, with Mexico-domiciled motor carriers crossing into the U.S. approximately 4.8 million times and transporting an estimated $215 billion in freight, and both sides agreed to extend the program to 2010. Due to recent funding issues, the United States' Department of Transportation (DOT) was forced to cease operations of the Demonstration Program. The Mexican government responded to the action by dissolving the program altogether. The United States and Mexico continue to attempt to reach a resolution regarding trans-boundary movements in accordance with NAFTA, and both parties are working to come to an agreement soon. The 36 agricultural products affected by the decision include condiments, fresh fruit, juices, nuts, pastas, pet food, sauces, and other items. A full list of these products can be found on the Foreign Agricultural Service website. The USDA's Mexico Mission will be providing a "Global Economic Downturn Series," a series focusing on Mexico's trade trends, problems and changes in the current global economy. More information on the series can be obtained through the Mexico Agricultural Trade Office. Contact information for the ATO, as well as more information on the tariff modification, can be obtained from FAS Attaché Reports, available online at www.fas.usda.gov under Market and Trade Data.
Display U.S. Products Overseas for Less! SUSTA Generic industry promotions offer a low-cost, low-risk way for small businesses from the southern region to introduce quality U.S. food and agricultural products to the world. Listed on our website at www.susta.org/events, these trade shows, missions, and other promotions put you, the seller, in front of foreign buyers that are seeking your products. In addition to providing the opportunity to meet these buyers, Generic promotions offer many of the following services to add value to your participation: To take advantage of these events, suppliers must meet the following requirements: A pre-qualification questionnaire is now available to help suppliers determine whether they qualify to participate in SUSTA promotions. This form can be obtained from the SUSTA office or your state's Department of Agriculture. When you register for Generic promotions online, a SUSTA representative will contact you to help you complete the form, and SUSTA will keep this document on file. Once your company has been pre-qualified, a participation agreement and registration invoice will need to be completed each time you sign up for a new activity. If you have any questions about registration procedures for Generic events or the U.S. origin requirement, please contact the SUSTA office at 504-568-5986.
Florida Produce Company Connects with Caribbean The Produce Connection, a Miami, Florida wholesale produce distributor, has utilized SUSTA programs to increase export sales to the Caribbean and Central America. Feeling the Caribbean market held many potential opportunities for the company, two employees enrolled in SUSTA's Minority Export Training (MET) program to learn how to move from domestic to international sales more efficiently. "The instruction we received really helped us feel confident and informed about what was happening in the industry," said Director of International Marketing Julie Escobar. In 2005, the company also applied for MAP Branded funding and signed up for Generic promotions to boost their international marketing efforts. With the training and experience they have gained through the MET, MAP Branded, and Generic programs, the company has been able to expand their export efforts into Central America. International export sales have more than tripled, from just over $1 million in 2005 to $3.3 million in 2007. In 2008, sales reached over $4.5 million. The company was awarded the U.S. Commercial Service's Export Achievement Award in 2007 and was nominated for a 2008 President's "E Star" award. With the continued assistance of SUSTA programs, The Produce Connection plans to continue expansion into new markets, such as Barbados, St. Kitts, Guyana, Aruba, the Falkland Islands, Trinidad and Tobago, Guatemala, El Salvador and Panama, and hopes to reach its export sales goal of $6 million in 2009.
Changes in SUSTA's Branded Department Market Access Program Branded applications and expense claims will no longer be divided and reviewed according to states. To better serve participants in MAP Branded, application and claim information will be reviewed on a first-come, first-served basis. SUSTA's Branded Department has been restructured to ensure that applications and reimbursement requests are processed in a timely manner and to guard against fraud. Below is a detailed breakdown of the duties of each individual in the Branded Department.
Deneen Wiltz, Branded Program Director If you have questions about these changes, contact SUSTA at 504-568-5986. To learn more about the Branded program, including the application and reimbursement processes, visit www.susta.org/services/map.html.
Connect with Vietnam Buyers in Chicago and Atlanta Suppliers from the SUSTA region are invited to meet one-on-one with a delegation of importers from Vietnam. A group of 8 key importers - some of the best in the country - are headed to Chicago to participate in the National Restaurant Association Show (May 16-19) and the All Candy Expo (May 19). These companies will also be in Atlanta on Thursday, May 21, for a series of one-on-one meetings with suppliers from the SUSTA region. The buyers are interested in a variety of retail and food service items. Vietnam is a booming market of over 85 million people, and quality U.S. products are in high demand. SUSTA is now accepting reservations for one-on-one meetings with these buyers, either in Chicago or Atlanta. Here are just a few of the many products that these buyers have requested:
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